Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:On September 14, Jennifer Rick went to Park Bank to borrow $3,600 at 9.25% interest. Jennifer plans to
repay the loan on January 27. Assume the loan is on ordinary interest. (Use Days in a year table.)
a. What interest will Jennifer owe on January 27? (Do not round intermediate calculations. Round your
answer to the nearest cent.)
Interest
$
b. What is the total amount Jennifer must repay at maturity? (Do not round intermediate calculations.
Round your answer to the nearest cent.)
Total amount
$
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- Kelly O’Brien met Jody Jansen at Sunshine Bank and suggested she consider a loan on exact interest. Recalculate the loan for Jody under this assumption. Jody Jansen went to Sunshine Bank on: 9/12/2020 She borrowed: $ 2,300.00 Her interest rate was: 0.09 Date the money borrowed is due: 1/27/2021 Previous interest was: 78.78 Required: Complete the following using the information above and exact interest: How many days is Jody Jansen borrowing this money for? Assume the loan is on exact interest. What interest will Jody owe on January 27? What is the total amount Jody must repay at maturity How much would she save in interest?arrow_forwardOn May 6, Jim Ryan borrowed $14,000 from Lane Bank at 7 1/2% interest. Jim plans to repay the loan on March 11. Assume the loan is on ordinary interest. How much will Jim repay on March 11? (Use Days in a year table.) (Round your answer to the nearest cent.) Jim Repayarrow_forwardOn May 6, Jim Ryan borrowed $14,000 from Lane Bank at 7% interest. Jim plans to repay the loan on March 11. Assume the loan is on ordinary interest. How much will Jim repay on March 11?LU 16-1(2) Gail Ross met Jim Ryan (Problem 3) at Lane Bank. After talking with Jim, Gail decided she would like to consider the same loan on exact interest. Can you recalculate the loan for Gail under this assumption? LU 16-1(2)arrow_forward
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